The lump of cognition fallacy - Andy Masley
andymasley.substack.com · 2,925 words · saved by 2 readers
The extended mind as the advance of civilization
One of the most common bad ways people think about economics is the lump of labor fallacy: the idea that there is a fixed, finite amount of work to do in an economy. The reason this is wrong is simple: doing things leads to more things to do. If you open a car factory, that’s going to generate demand for more mechanics. Mechanics generate demand for more tools and supplies. As an economy grows, there are more things to do, not less. The American economy today has way, way more demand for very specific tasks than it used to. People concerned about immigrants taking jobs sometimes imply that…
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